TOPLINE
The market opened slightly higher on Wednesday as investors closely watch for the Federal Reserve’s latest policy decision and a congressional hearing on antitrust in Big Tech later in the day.
The Federal Reserve building.
Daniel Slim/AFP via Getty Images
KEY FACTS
The Dow Jones Industrial Average was up 0.1%, nearly 50 points, at Wednesday’s open, while the S&P 500 rose 0.4% and the tech-heavy Nasdaq Composite gained 0.8%.
The Federal Reserve, which concludes its two-day policy meeting on Wednesday, is expected to keep interest rates unchanged at near zero to continue to support the economy through the coronavirus pandemic.
The CEOs of Amazon, Apple, Facebook and Google-parent Alphabet are set to testify before the House Antitrust Subcommittee later on Wednesday, which may give investors insight into how Big Tech companies are handling challenges from regulators.
While Big Tech companies are among the best-performing stocks so far this year, there are rising concerns on Wall Street that heavy market concentration in these handful of big names could pose downside risks.
The busiest week of the second quarter earnings season continued, with shares of General Electric, Advanced Micro Devices, General Motors and Shopify all rising after the companies reported better-than-expected results.
Boeing and Starbucks, meanwhile, posted wider-than-expected losses last quarter, but both stocks traded higher heading into the market open.
Key background
Investors also continued to assess the latest coronavirus relief bill unveiled by Senate Republicans late on Monday, titled the Heath, Economic Assistance, Liability Protection and Schools (HEALS) Act. The GOP proposal for the next round of federal coronavirus aid includes a second round of $1,200 stimulus checks and more funds for small business loans in the Paycheck Protection Program. The bill would also eliminate the $600-per-week federal unemployment supplement, which states stopped paying out this week, to be replaced with a 70% wage-replacement program.
What to watch for
The Federal Reserve will wrap up its two-day policy meeting on Wednesday: The last time Fed officials met in June, they decided to maintain the target range for the federal funds rate at 0% to 0.25%. On Tuesday, the central bank announced that it would extend loan programs through the end of 2020 as it continues to support the U.S. economy amid the pandemic.
Further reading
Dow Falls 200 Points After Senate Republicans Unveil Coronavirus Relief Bill (Forbes)
Dow Falls Nearly 200 Points After China Retaliates By Ordering Shutdown Of Chengdu Consulate (Forbes)
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